Why You Might Consider A Home Warranty

by Pamela Watson 12/15/2019

You may have heard about home warranties, but are unsure of what they are. A home warranty is an excellent addition to your home insurance and has a particular function. When you buy a home, the last thing you want to worry about is things breaking or malfunctioning in the house after you buy it. Buyers fear the expenses they may incur if items in the home start to break down shortly after the property becomes theirs. As a first-time homebuyer, a home warranty can be incredibly helpful since you may need a crash course on home maintenance. 


Depending on what’s the norm for homebuyers locally, either the buyer or the seller will pay for the home warranty. Some sellers pay for warranties up front as an extra assurance to the buyer of the property they’re about to purchase. Sellers also use this as an excellent tactic to “wash their hands” of the property. The buyer won’t need to contact the seller if something goes wrong with the property. A home warranty is a fairly inexpensive way to show buyers that appliances and the home itself have been well taken care of. Occasionally, real estate agents will give buyers a home warranty as a gift for their business. Usually, this is done for higher-end homes. 


Home warranties aren’t very expensive. They usually range in price around a few hundred dollars in cost. The cost is based on a yearly rate and can be renewed each year at a slightly higher premium. 


How Do The Warranties Work?


The warranty provider works with specific companies for different purposes. When the homeowner calls the warranty provider to let them know there’s a problem, the service provider will call the homeowner to make arrangements to fix the problem. If an appliance cannot be repaired, the warranty company may replace the item. There are usually small service fees associated with these repairs and replacements.


Is Anything Not Covered?


A home warranty will not cover numerous items around the house. These items include:


Outdoor fixtures and plumbing

Indoor plumbing fixtures

Pools

Hot tubs

Some appliances may not be covered

Heating system

Water heaters

Cooling system

Fans


Home warranty plans can vary based on your location and the type of policy. Make sure you review what’s covered before you finalize any home warranty. It’s an individual choice that homeowners make to have a peace of mind when moving into a new place.  

About the Author
Author

Pamela Watson

My Resume

Specialties: Buyer's Agent, Listing Agent, Relocation, Investment Property & REO sales

Since 1979, Pam has been dedicated to providing the most comprehensive, effective, and caring of Real Estate services. She is known and trusted throughout Solano County as a professional who is committed to her clients' real estate success.

Pam is celebrating 40 years selling Solano homes with notable results. She has helped over 1,500 families realize their real estate goals during her career.

Pam and her husband Tim have lived here since 1979. Tim is a licensed contractor/carpenter. They has three sons, all raised in Fairfield. Pam and Tim designed and built their own home in Fairfield giving Pam a lot of knowledgeable of construction and how homes are built.

Always happy to share her "ground up" knowledge of real estate with clients, Pam's extensive knowledge of the area and its homes have been of great benefit to those who are new to the area and to those who are simply changing neighborhoods.

My Experience

Licensed California Broker

CRS: Certified Residential Specialist (Top 5% in the Nation)

GRI: Graduate of the Real Estate Institute

PMN: Performance Management Network (Women’s Council of Realtors since 1992)

SRES™: Seniors Real Estate Specialist

RRC: Referral & Relocation Nationally Certified

ASP: Accredited Home Staging Professional